Looking at the charts, they look a lot like a map of the Indian subcontinent, with Karachi representing October 2007 and Karungulum March 09. That, to my mind, puts us near Satabhaya presently (just south of the Bangladesh border).
The rally is likely to flatten out, as we grow in confidence and comfort with the recovery (with a hiccup or two around monetary exit), and the market will continue to have a positive skew. Welcome to a "more normal" market.
Alas, if we fail to address the serious global imbalances, then we are likely to take a right turn at Chittagong. And that looks ugly.
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